Analyst John McNulty of BMO Capital reiterated a Buy rating on DuPont de Nemours (DD – Research Report), retaining the price target of $116.00.
John McNulty has given his Buy rating due to a combination of factors influencing DuPont de Nemours. One significant aspect is the company’s strategic move to potentially divest its Kevlar and Nomex brands. This aligns with DuPont’s focus on strengthening its presence in the Water and Healthcare sectors, which are seen as key growth areas. The potential sale is expected to enhance the company’s value by focusing on these secular themes and optimizing its portfolio.
Additionally, McNulty believes that DuPont’s current valuation does not fully reflect its potential, especially with the upcoming spin-off of its Electronics platforms. This spin-off is anticipated to unlock significant value, contributing to the company’s growth at rates exceeding GDP with strong margins. The reinvestment of capital from any potential sales into the Water and Healthcare businesses further supports the company’s growth strategy, making DuPont a top pick with an outperform rating.
In another report released on March 24, RBC Capital also maintained a Buy rating on the stock with a $101.00 price target.
DD’s price has also changed moderately for the past six months – from $89.110 to $74.680, which is a -16.19% drop .